Tags:
Journalism of Courage
CHANDIGARH, July 30: Fraudulent availing of Modvat credit worth Rs 63 lakh by several manufacturing units in Punjab, by producing fake invoices issued by an Abohar based import firm, has been detected by the Central Excise Commissionerate-II. This is the first case of its kind in the region.
According to Excise Commissioner Inder Raj Soni, the firm, Shobhit Impex, registered with the excise department as a trader at Abohar, used to issue invoices to manufacturers of copper products without actually dispatching any goods. These invoices enabled purchasers and manufacturers to avail modvat credit on the countervailing duty paid at the time of import.
The firm had imported copper scrap, copper birch, cast copper rods, zinc ingots and brass scrap through various ports after paying the required customs and countervailing duty.
Modvat invoices equivalent to the countervailing duty can be issued by the trader. The total value of imports made by Shobhit Impex is over Rs.3 crore, involving a quantity of 482.75 metric tonnes.
Soni said that the documents seized during the raids of office premises and godowns of the firm yielded incriminating evidence of conspiracy to defraud the government in connivance with some manufacturers.
Raids at the manufacturing units at Ludhiana, Bathinda, Jalandhar and Sangrur ascertained movements of fake documents without the goods.
During investigations, firms authorised signatory O.P. Gandhi confessed of issuing fake invoices and transport receipts as well as not releasing any goods. He was running the firm in the name of his college-going-daughter.
Also the firm8217;s truck PB-05-C-9684 had been shown operating on the same day to Bhatinda and Ludhiana to transport metal as well as carrying fertilisers to Rania, Sirsa, Fazilka and Jalalabad.
Investigations also establish that records of sale of metal were fudged, with wrong names of manufacturers and place of destination being logged. Soni also did not rule out involvement of excise officials in this racket and said that action would be taken against the guilty. He said about Rs 7 lakh has already been recovered by the department. Meanwhile, Gandhi and his daughter have obtained stay on arrest.
Top
